Asian Millionaires Firing Bankers Take Control of Wealth

[Enye]

WARNING long article

 

Isn't private banking is still a much coveted job and didn't many private banks say they are aggressively expanding?

 

 

Clinton Ang, the grandson of a gunny- sack seller who emigrated last century from China to Singapore, oversees a fortune valued at almost $80 million for himself and three siblings.

 

That makes him a target for wealth managers in Singapore, the private-banking capital of Asia. Yet the 39-year-old managing director of Hock Tong Bee Pte, which evolved from his grandfather

[Liping24cn]

How can a banker knows the feeling of losing a million dollar or splurging ecstasy on a $600 BJ.....that a truely rich millionaire feels.

The banker will NEVER understand the psych of a tycoon, if the banker is not as rich.

 

So there is no way the bankers can help to manage a $100,000,000 investment if his salary is only $8,000 per month.

Same analogy the gov use to justify high pay.

At some point, the banker will be so tempted by corruption, to make use of clients money to churn and generate commissioning for himself!!!

 

[Viceroymenthol]

How can a banker knows the feeling of losing a million dollar or splurging ecstasy on a $600 BJ.....that a truely rich millionaire feels.

The banker will NEVER understand the psych of a tycoon, if the banker is not as rich.

 

So there is no way the bankers can help to manage a $100,000,000 investment if his salary is only $8,000 per month.

Same analogy the gov use to justify high pay.

At some point, the banker will be so tempted by corruption, to make use of clients money to churn and generate commissioning for himself!!!

 

Bankers managing $100m clients don't earn $8k a month lah, you twit. The bankers' senior personal assistant makes $8k a month.

[Enye]

Private banker vely rich leh

 

they see you no up unless you have at least $30MM

 

below $10MM they look down on you

 

between $10MM and $30MM, they consider themselves on the same level as you...

 

dun pray pray

 

[Rockaphonics]

Bankers managing $100m clients don't earn $8k a month lah, you twit. The bankers' senior personal assistant makes $8k a month.

 

Well, according to the article, a big firm like HSBC makes 2 % return on capital.

Assuming a RM manages 300M, that is approx 6 million in return.

After paying back their clients, expenses and salaries to traders etc. How much of the salary do you think is available to these RM?

Just a food for though because i have no idea myself.

I would estimate a range of about 5 - 10 % of profits which equates to approx 500 K. Which is rather realistic. Also that is in 2011 which is a good year for asian equities and products which HSBC said they invested in.

So we can expect a RM with 300M AUM to rake in 500 k- 1M (base on 4% return of capital) in a good year, significantly less in a bad year (2008) if they still have their jobs in the first place.

of course this is pure speculation, if anyone knows please share thx.

Edited August 1, 2012 by Rockaphonics

[Wyfitms]

managing 100m doesnt bring in much for the bank. With today's squeezed fees environment.

 

U can't be paying the RM 250K plus 12 mths bonus if he only has a 100m portfolio.

[Viceroymenthol]

managing 100m doesnt bring in much for the bank. With today's squeezed fees environment.

 

U can't be paying the RM 250K plus 12 mths bonus if he only has a 100m portfolio.

 

You are right. S$100m is only three or four entry-level clients. Must be a junior CA.

 

And note some banks private banking entry requirement is different from others hor....

[Throttle2]

Teddy our in house Private Banker will know best..

 

Calling Teddy.....*tick tick tick tick *morse code*

[Porker]

Asset management and development management fees for private equity real estate have dropped to less than 3% and probably will drop further assuming they can still raise funds (read Apollo Global Management)! I know head of capital transactions in such a firm makes circa 400k pa base salary.

Ball game is different from private wealth since the portfolio value is more often than not lower.

[Throttle2]

Asset management and development management fees for private equity real estate have dropped to less than 3% and probably will drop further assuming they can still raise funds (read Apollo Global Management)! I know head of capital transactions in such a firm makes circa 400k pa base salary.

Ball game is different from private wealth since the portfolio value is more often than not lower.

 

 

cheem leh, bro....can simplify

[Porker]

cheem leh, bro....can simplify

 

Mai geh geh hor

[Longg8]

How can a banker knows the feeling of losing a million dollar or splurging ecstasy on a $600 BJ.....that a truely rich millionaire feels.

The banker will NEVER understand the psych of a tycoon, if the banker is not as rich.

 

So there is no way the bankers can help to manage a $100,000,000 investment if his salary is only $8,000 per month.

Same analogy the gov use to justify high pay.

At some point, the banker will be so tempted by corruption, to make use of clients money to churn and generate commissioning for himself!!!

 

 

i dont need to understand the "psych of a tycoon" to help you make money...

 

traders who helped 1st tier investment banks to trade billions are not billionaires to being with...

 

right?

 

some of the private bankers are smart people as well.... top graduates from ivy league ok...

 

and no, im not a private banker...just feel that your statement really...no basis...

Edited August 1, 2012 by Longg8

[Throttle2]

i dont need to understand the "psych of a tycoon" to help you make money...

 

traders who helped 1st tier investment banks to trade billions are not billionaires to being with...

 

right?

 

some of the private bankers are smart people as well.... top graduates from ivy league ok...

 

and no, im not a private banker...just feel that your statement really...no basis...

 

by the way, what do you trade ah?

can share?

[Tedlhw]

Wow very interesting article.

Suffice to say, don't believe everything people say when being interviewed.

 

On average, ROA(return on assets) is probably much closer to 1% to 1.25%.

The total compensation is likely to be around 18% to 25% of revenues.

Think you guys can draw your own conclusions there.

[Tedlhw]

Bankers managing $100m clients don't earn $8k a month lah, you twit. The bankers' senior personal assistant makes $8k a month.

 

Thats true, if you are managing 100M type clients, your portfolio would probably be around USD1 Billion.

Same numbers apply, maybe slightly lower ROA.

Approx USD8-10M in revenues

 

[Throttle2]

anyone got opening for me boh?

time to give up this table wiping sh1t

Edited August 2, 2012 by Throttle2

[Wyfitms]

i dont need to understand the "psych of a tycoon" to help you make money...

 

traders who helped 1st tier investment banks to trade billions are not billionaires to being with...

 

right?

 

some of the private bankers are smart people as well.... top graduates from ivy league ok...

 

and no, im not a private banker...just feel that your statement really...no basis...

 

When i used to work in a PE fund, my MD would always remind us that our fund mandate is to make 25% IRR. So naturally we must be able to make that kind of return in our own personal investments.

 

I thought he

[Wyfitms]

Asset management and development management fees for private equity real estate have dropped to less than 3% and probably will drop further assuming they can still raise funds (read Apollo Global Management)! I know head of capital transactions in such a firm makes circa 400k pa base salary.

Ball game is different from private wealth since the portfolio value is more often than not lower.

 

management fees have compressed to even less than 1% at times.

 

The real money comes from profit sharing or interest carry which can come up to 20-30% of realized gross profit.

 

Quite substantial as on average, equity returns can be over 300% over a 4-5 year period.